The order distribution analysis in different regions has been completed, but there is still a big difference between the order distribution and the market share index. If the store brand of the operator does not have a certain influence and popularity, the order share in different regions is almost the same as the local population share. In order to more objectively evaluate the popularity of their own products in different regions, operators can use the “market share index” to measure it. The calculation formula of this value is as follows.
Market share index = local order ratio – local population ratio
For example, if a store has 1,000 orders in 1 year, of which 100 orders are in California, then the local order ratio in California is 10%. At the same time, the population of California in 2018 was 39.77 million, accounting for 12.13% of the US population, so the population ratio of California is 12.13%. Finally, the market share index of California = 10% (local order ratio) -12.13% (local population ratio) = 0.82.
The table contains the population/population ratio of different states in the United States in 2018, as well as the order ratio of these regions. These two ratio data can be used to calculate the market share index of these states. After completing the calculation, you can use the “IF” judgment statement in Excel to judge whether the “market share index” is greater than 1.
When the “market share index” is greater than 1, the value of the “market positioning judgment” is 1, and when the “market share index is less than or equal to 1, the value of the “market positioning judgment” is 0.
When the value of the “market positioning judgment” is equal to 1, it means that the order ratio in the region is higher than the population ratio. At this time, the higher the value of the “market share index”, the higher the brand influence and product popularity in the local area.
When the value of the “market positioning judgment” is equal to 0, it means that the order ratio in the region is lower than the population ratio. At this time, the lower the value of the “market share index”, the lower the brand influence and product popularity in the local area.